IRS Sets 2026 Mileage Rates: What Church Leaders and Volunteers Need to Know

The Internal Revenue Service has announced the updated optional standard mileage rates for 2026, effective January 1, 2026. These rates are used to calculate deductible vehicle expenses for business, charitable, medical, and certain moving purposes—and are especially relevant for congregations, rostered ministers, and volunteers who regularly drive in service of the church.

2026 Standard Mileage Rates

Beginning January 1, 2026, the IRS standard mileage rates are:

  • 72.5 cents per mile for business use (up 2.5 cents from 2025)

  • 14 cents per mile for charitable use (unchanged from 2025)

  • 20.5 cents per mile for medical purposes (down 0.5 cents)

  • 20.5 cents per mile for moving purposes for certain active-duty military members and certain members of the intelligence community (down 0.5 cents)

These rates apply to electric, hybrid, gasoline, and diesel vehicles.

What This Means for Ministries and Leaders

For pastors, church staff, and volunteers who travel for synod meetings, congregational visits, pastoral care, and ministry events, the increase in the business mileage rate may affect reimbursement policies and budgeting for 2026. The charitable mileage rate, which applies to volunteers driving in service of nonprofit organizations, remains fixed by statute at 14 cents per mile.

The IRS sets the business mileage rate based on an annual study of both fixed and variable vehicle operating costs, while the medical and moving rates reflect only variable costs.

Important Tax Notes

  • Use of the standard mileage rate is optional; taxpayers may instead calculate actual vehicle expenses.

  • Taxpayers who choose the standard mileage rate for a vehicle they own must do so in the first year the vehicle is used for business.

  • For leased vehicles, the standard mileage rate must be used for the entire lease period, including renewals.

  • Most employees cannot deduct unreimbursed travel expenses, though limited exceptions remain for certain educators, performing artists, reservists, and others.

Congregations and ministries are encouraged to review their reimbursement practices and ensure policies align with the updated 2026 rates.

For full technical details, including valuation rules for employer-provided vehicles, see IRS Notice 2026-10.

Grand Canyon Synod, Leader ResourcesBrian FlatgardComment